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Cenvat credit on imported paper waste material

Hiren (Trainee) (30 Points)

28 January 2014

We are importing paper waste material at concessional rate of duty that nill rate of custom duty but we are paying CVD equal to the excise duty, along with CVD we are paying Ed cess and SH Ed cess. in case of CVD we can get credit of CVD but my problem is that whether i can get credit on Ed cess and SH Ed cess on CVD.

Can any one help me please its most urgetly for me.

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6 Replies

kumar hattanna (Officer - Excise) (525 Points)
Replied 29 January 2014

If waste using of manufacturing purpose to produce the new product then it is eligible for credit.

karan jit singh (Consultant) (1299 Points)
Replied 29 January 2014

EC AND SHEC ON EXCISABLE GOODS CAN AVAIL CREDIT OF THE SAME BUT IT SHALL BE UTILISED ONLY FOR EC AND SHEC

Ajay Raghatate (Sr Executive (Excise & Accounts)) (736 Points)
Replied 30 January 2014

No, BCD , Custom Ed Cess & H Sec Ed Cess are not eligible to avail cenvat credit. CVD & 4% Addl Duty is only eligible to avail cenvat credit on Imported input or Capital goods.

karan jit singh (Consultant) (1299 Points)
Replied 30 January 2014

Originally posted by : Ajay Raghatate
	No, BCD , Custom Ed Cess & H Sec Ed Cess are not eligible to avail cenvat credit. CVD & 4% Addl Duty is only eligible to avail cenvat credit on Imported input or Capital goods.

Not agree with you please refer rule 3(1) or otherwise do clarify

Ajay Raghatate (Sr Executive (Excise & Accounts)) (736 Points)
Replied 31 January 2014

Dear Karanji,

Ed Cess & S&H Ed Cess on CVD exempt wef 1 Apr 2012,

vide Notf No. 13/2012-Cus, dt.17-03-2012 & 14/2012-Cus, dt.17-03-2012

The Ed cess & S&H Cess shwowing in Bill of Entry is Custom Ed Cess & S&H Cess

and BCD & Custom Cess not eligible to credit.

Thanks

karan jit singh (Consultant) (1299 Points)
Replied 31 January 2014

YES, deifinitely EC AND SHEC is exempt on CVD and on custom no Credit of EC and SHEC is eligible. But in case of EOU , EC and SHEC on overall amount is eligible for Credit